How To Determine The Trade-In Value Of Your Vehicle
There are many reasons why car owners decide to trade-in their current vehicle for a new one. Whether it is because of certain changes in their family situation, such as having more children or having children move out, or simply because they want to get some money out of their older car when buying a new one, trading-in a car simply makes sense. And since currently there is a shortage of vehicles on the market in Ontario, many car dealerships are looking for used cars and this is good news for you if you are looking to trade-in your vehicle. In this blog we will provide you with information regarding the trade-in value of your vehicle so that you can determine what your car is actually worth.
Definition Of A Car’s Trade-In Value
A car’s trade-in value is defined as the amount of money that a car dealership will offer you for your older vehicle when you are buying a new one. Very often, your car’s trade-in value will be less compared to the market value, or the money that you would get for your older vehicle if you decided to sell it on your own. However, there are clear advantages to trading-in your vehicle such as the convenience of not having to advertise your car for sale or not having to meet with strangers for a test drive.
How To Determine Your Vehicle’s Trade In Value?
The most effective and easiest way of determining your car’s trade-in value is with the use of a car trade-in calculator.
But before you decide to find out your vehicle’s trade-in value, be sure to have the following information handy:
Your vehicle’s make, model, year, and trim.
Any upgrades or specific features on your vehicle.
The vehicle’s mileage.
Your postal code.
Factors That Determine Your Vehicle's Trade-In Value
Whether it is the mileage or the overall condition of your used vehicle, the trade-in value of your car depends on a few factors which in most cases include the following:
Your Trade-In Vehicle’s Age
It is the case that most cars lose significant value after just a few years on the road with most cars losing their value up to 20% - 30% in the first year and 60% or more after five years.
The Vehicle's Mileage
In most cases, a vehicle with significant mileage will bring you less money in a trade-in situation.
The Condition Of Your Trade-In
The overall condition of your trade-in vehicle is a significant factor that determines your vehicle’s trade-in value, even more than the age and mileage of your car. This is because cars that are in good overall condition require less work and money to repair or replace parts that would make the vehicle road ready. If your trade-in requires some work, you probably will lose some money on your trade-in.
The Vehicle's Maintenance History
If you took good care of your while in your possession by maintaining it according to the manufacturer’s maintenance schedule, you can expect to get the highest trade-in value for your used car. When trading-in your vehicle, be sure to present any receipts to the car dealership that shows a regular maintenance schedule for your vehicle over the years.
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